About this Show

Real Money With Ali Velshi

News/Business. The impact of jobs, housing, healthcare, education and savings on the economy. (CC) (Stereo)

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00:31:00

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San Francisco, CA, USA

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Comcast Cable

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Channel v107

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mpeg2video

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ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

America 4, Us 4, Al Jazeera America 3, Florida 3, United States 2, Morgan Stanley 2, James Wilson 2, Georgia 2, Atlanta 2, Texas 2, Lakeland 2, Jazeera America 2, Bryce 2, Arizona 2, Ranjani Chakraborty 1, Oklahoma 1, Greg Martin 1, David Hunt 1, Bo Xilai 1, Houston 1,
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  Al Jazeera America    Real Money With Ali Velshi    News/Business. The impact of jobs, housing,  
   healthcare, education and savings on the economy. (CC) (Stereo)  

    August 24, 2013
    8:30 - 9:01am EDT  

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[[voiceover]] no doubt about it, innovation changes our lives. opening doors ... opening possibilities. taking the impossible from lab ... to life. on techknow, our scientists bring you a sneak-peak of the future, and take you behind the scenes at our evolving world. techknow - ideas, invention, life. content while setting new standards in journalism. >> a new voice of journalism in the u.s., al jazeera america. america. >> we tell the human store ri from around the block, across
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the country. >> if joe can't find work, his family will go from living in a hotel to living in their car. >> connected, inspired, bold.
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what happens when social media uncovers unheard, fascinating news stories? >>they share it on the stream. >>social media isn't an afterthought. it drives discussion across america. >>al jazeera america social media community, on tv and online. >>this is your outlet for those conversations. >>post, upload, and interact. >>every night, share undiscovered stories. every sunday night al jazeera america presents gripping films from the world's top documentary directors. >> this is just the beginning of something much bigger. >> thank god i didn't have to suffer what he had to go through. >> this sunday, the premiere of "into eternity".
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>> i am now in this place where you should never come. >> how do you contain 100,000 years of nuclear danger? >> it is an invisible danger. >> al jazeera america presents "into eternity". premieres sunday night 9 eastern. >> i want to continue the conversation on housing for a minute, it's such an important part of the economy. there is a huge change going on in many neighborhoods across the country. it might even be inous. big investors are buying up foreclosed homes in distressed communities as far as they can. then they're turning them into rental homes. it's creating a buy to rent industry. some locals say the big financial firms have bought so many homes its driving up prices. to check that out we traveled to georgia just outside of atlanta. that area has the second largest number of homes bought by investors outside of tucson, arizona.
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this is like an auction that is like a feeding frenzy. [ auctioneer ] >> meteorologist: the first tuesday of every month this is the scene on the courthouse in gentleman. hundreds of dispressed properties sold in the blink of an eye. >> well, it's very exciting, somewhat like herding cats. >> reporter: it's bryce's first time at the auction. he and his wife are hoping to buy a home on the cheap, but he wasn't expecting the chaos. >> how do you find out who is difference? i see several different locations. >> reporter: or the big investors who are driving up competition and the vail price of the foreclosed homes. >> i go "g" from $500 incremented. they go up $5,000, so i'm trying to get it to $150,000, and they're 150 to 160, 170.
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you just look at it and say that house is not worth it. >> reporter: it's a phenomena happening nationwide. big investors going into distressed communities and buying homes binges have repossessed. >> not one institution owns 1,000 family single family rental homes. >> reporter: now institutions only 80,000 homes across the united states, and morgan stanley predicts the buy to own will balloon from $17 billion to $100 billion. >> we're here to capture as many properties for our clients as possible. >> reporter: she's buying properties for some of the wall street landed. >> hedge funds across the country are realizing that our market is going from what they refer to as an owner nation to a renter nation. the rental markets is huge. >> reporter: even though the housing market is improving, a new morgan stanley report shows that homeowners who have defaulted on their mortgage will have no choice but to rent and
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moving the country to a rentallership society. >> the institutional investor presence is led by three large groups that appear to have pulled away from the pack. first is black stone's invitation homes. second, american homes for rental, which recently ipo'd, and third, colony american homes. >> reporter: big investors are pooling some of these homes into real estate investment trusts or reits. they're investing in real estate and said on the stock exchange. invitation homes is the largest firm in the gain owning 30,000 homes across the united states. >> black stone in atlanta has purchased over 8,000 houses. >> reporter: local broker david hunt said the institutional investors are changing the housing market. >> in one month we auctioned off
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our advertised for foreign closer 1,089 houses. what's being created, the hedge funds are taking those off the market. they're not available for anybody to buy. so we're coming up with a shortage of housing. >> reporter: local realtor greg martin agrees. >> here for example 21 active homes for sale. that is about one-third of the inventory that we had in 2008. not down one-third. we have one-third of the homes to sale today that we had before the market down turn. >> reporter: but analysts say that's a good thing for now. >> i think that the overall feeling is that the low inventory has been a good thing because it really put a floor under home prices. >> reporter: but going forward some analysts question how long institutional investors might stay in the rental market. >> because historical single family yields are quite lower than they are today, and quite lower than history yields in other
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commercial real estate asset classes . >> reporter: and worries the communities they're buying in. >> at some point in time they will have to sale. that's a fact. how long they'll hold it, i don't know. >> reporter: black stone which declined to comment said that they're committed to investing in the communities where they're buying. >> i think it's we're making a bet on america. we're betting that housing prices are beginning to recover. >> i've talked to some of our clients who are these institutional investors. they generally tell me they're planning for a long-term hold. >> reporter: big investors may be buying up the foreclosed house right now, but it's not deterring some locals like bryce. >> we'll come back next month and bring our guns in. we're the little fish in the big pond, you have to bite the shark in the ass. >> make no mistake, georgia is full of investor interest.
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reality tracks say the state tops of list of big investment purchased. they count for 23% of all residential sales in june. nevada second, and arizona with 15%, and oklahoma at 13%. if you want to find out how many homes big investors own in your community, log on to our website. we've got the full report there. www.america.aljazeera.com/real money. for more of what is going on with the housing recovery i want to take to you polk county, florida. building permits there fell by 90%. this was a really hard-hit area. today it's a different story. home sales in june were up 25% from a year earlier. now i've been telling you these things on a higher level. i want to go right to the ground now for more on the situation in polk county. we go to james wilson. he built single family homes in lakeland, florida. right now he has got 22 homes under construction. he's renting another 60 homes that his company built. james joins us now on the phone
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from one of his properties that's actually under contract. james, are you with us? thank you for joining us. >> yes i am. >> reporter: i'm getting bad weather across the country. we want to see you on camera. we know that you've got a storm where you are so we have to talk to you on phone. i've been describing to my viewers what's happening in the housing market, the fact that it has been strengthening for so long. you're in a place that was so hard hit during the recession, tell me as a home builder what you've seen happen in the last year. >> in the last year we've seen prices increase from $85 a foot to $100 to $110. we've had real estate investors come in, and it's changed the market up some for us, and we've been picking up quite a bit of home buyers in the last six months. >> reporter: now are most of your buyers people who are taking the mortgage to buy a house and live in it, or are
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these investors that i was just talking about. >> we've had them both. right now we seem to have more people looking to buy it than to to--and live in it. >> we've seen a strong market, no question in new homes. we've just seen the report in july that shows a fairly good drop off in june. we don't know if that's from interest rates or access to loans. have you seen that or is business still moving ahead at the same base for you. >> in polk county we see that annually. we come across a month or two where we run into slow sales and then it kicks in august, september and october. >> so you can't tell whether a slowdown is because of something going on in the economy or it's just the normal slowdown that you would see in summer? >> i think it's the normal. i build specks, and right now we stand steady, i get calls continuously asking what i've
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got out on the market. usually it's individual home buyers again, and i could wait six, seven eight months before i put up a contract on a home that i built as a speck. now usually within 90 days after completion we've got a contract. >> that's definitely a trend we've been seeing. one last question, james, one of the things i've been trying to explain to my audience is the jobs created from new home building. i know you only employ one other person in your company, but when you have to build homes you are employing other contractors. >> that's correct. we probably employ 60 people direct through construction. and they're struggling to find help right now. that's been one of our hardest problems in our cost, and the hard cost of our materials is steady on the rise, and the subs are struggling to find help. >> james, good to talk to you. hopefully we'll see your face one of these days.
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join us on tv, james wilson in lakeland, florida. all right, lights, camera, action. get ready for a movie about guns, women, and mutual funds. yeah, mutual funds. we'll tell but a creative way two consultants are trying to connect young investors and my name is ranjani chakraborty, i'm from houston, texas, and i'm an associate producer for america tonight. i grew up in a very large, loud indian family. they very much taught me how to have a voice, and from a very young age i loved writing, and i love being able to tell other people stories. the way to do good journalism is to really do your research, to know your story, to get the facts right, and to get to know the people involved in your story. america tonight and al jazeera america, it's a perfect place for that to happen.
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[[voiceover]] no doubt about it, innovation changes our lives.ç]
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from the world's top documentary directors. >> this is just the beginning of something much bigger. >> thank god i didn't have to suffer what he had to go through. >> this sunday, the premiere of "into eternity". >> i am now in this place where you should never come. >> how do you contain 100,000 years of nuclear danger? >> it is an invisible danger. >> al jazeera america presents "into eternity". premieres sunday night 9 eastern. there's more to financial news than the ups and downs of the dow. for instance, can fracking change what you pay for water each month? have you thought about how climate change can affect your grocery bill? can rare minerals in china affect your cell phone bill? or how a hospital in texas could drive up your healthcare premium? i'll make the connections from the news to your money real.
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[♪ music ] >> hello, and a very warm welcome to the news hour. we're at al jazeera's headquarters in doha. the top u.n. official is in syria to push for an investigation into an alleged chemical weapons massacre as the white house discusses options. bo xilai admits he made mistakes. the latest from the trial of the chinese politician accused of corruption. we

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